GLD Deception Reaches a New Level

171
Wed, Jul 17, 2013 - 5:55pm

Just as Westley asked Fezzik, "Look. Are you just fiddling around with me, or what?".

My contempt for the GLD and its Authorized Participants is well-documented. I have no doubt that this sham vehicle was expressly created to siphon demand for actual bullion and provide a readily-accessible inventory of metal for the Bullion Banks to "flywheel" whenever and wherever conditions warranted.

Since the first of the year, the GLD "inventory" is now down over 30%, having fallen from 1,350 metric tonnes to today's 936. The shills of the sell-side firms and the dupes in the financial media proclaim that this liquidation is due to heavy investor "selling and reallocation" away from precious metal. Of course, the fact that the comparable silver ETF, the SLV, is UP in inventory by 140 tonnes matters little. The narrative must be forced down your throat in order to provide the banks the continued cover that they require.

And then you get days like today and yesterday, where the banks let their guard down. Did they mess up and accidentally show their true motives OR do they just simply not care anymore, preferring to thumb their collective noses at all of us who are screaming "fraud" and "sham"?

Why do I say this? Check this out.

Yesterday, the GLD reported another drawdown. (Even though price had risen by over $40 since last Thursday...but I digress.) Yesterday's "inventory reduction" wasn't significant compared to some of the drops we've seen this year, it was reported at just 1.50 metric tonnes. The only thing that caught my eye was the round number of 1.50. That seemed strange so I made a mental note and moved on.

Today, the GLD reported another drawdown and this one really got my attention because...drumroll, please...the amount reported was another 1.50 mts. Exactly, right on the nose. Drill down even further and it gets more hilarious:

Monday GLD: 30,192,195.27 troy ounces

Tuesday GLD: 30,143,884.76 troy ounces

This is an AP withdrawal of 48,310.51 ounces. (As an aside, how the heck do you account for the extra 0.51 ounces anyway? Doesn't that seem strange, too? But, again, I digress.) Now check this out:

Tuesday GLD: 30,143,884.76 troy ounces

Wednesday GLD: 30,095,574 troy ounces

This an an AP withdrawal of 48,310.04 ounces.

Seriously, we're supposed to believe that paper gold went up $6.90 yesterday and fell by $12.90 today, all the while the exact same number of shares were tendered each day leading to the exact same physical withdrawal. As they say, "I might have been born at night but it wasn't last night". Exactly 48,310 ounces for two days in a row? Seriously?? Give me a break! Are you just fiddling around with me or what?!?

This is all a huge sham, scam and joke. Can there be any remaining doubt that folks like Maguire, Sprott and Williams are correct? Decades of leasing and rehypothecation have left physical gold in such short supply that a crisis has developed within the fractional reserve bullion banking system. Absent available physical gold to deliver immediately to hungry Eastern buyers, The Gold Cartel Bullion Banks have been utilizing the current price weakness to raid the GLD for every possible ounce. Further proof of this extreme physical tightness is seen in the negative GOFO rates, which have now remained negative for a record-shattering eight, consecutive days.

This charade will soon end in spectacular fashion. Please continue to accumulate physical metal, as much as you deem prudent, while you still can.

TF

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  171 Comments

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alan2102zman
Jul 18, 2013 - 11:53am

zman

"In early 2006, silver was $15-16 oz, here we are in 2013 or 7.5 years later, and basically no gains. Is 7.5 years long term investing? Yes. Did silver serve as a inflation hedge during those 7.5 years? No."

But if you go back 5 years earlier, silver served as a great inflation hedge: $5 to $20. But if you go back 20 years before that, the picture reverses. But if you go back 15 or so years before THAT, the picture reverses once again: $.50 to... whatever. Choose your timeframe and get completely different pictures.

Byzantium
Jul 18, 2013 - 11:53am

Comex relevance

Motley had asked a few threads ago, to check our assumptions on the relevance of the Comex, in light of his own view that it is just a backwater compared to where the gold and silver action really is. The implication was that studying the Comex COT was a waste of time.

Though I do not agree with Motley on this at all, I think it was an excellent challenge, and perhaps worthy of a thread on a slow day, using Motley's original post, to put the issue to bed?

Off the top of my head, I'd say that the Comex is indeed relevant, for the following reasons (among others):

  1. LBMA and other arenas are too opaque, they are no good for market watchers.
  2. The Bullion banks dominate both the comex and the LBMA. They might well be using one arena to hedge their activities on the other, but what are the chances in fact that they are short on one and long in the other?
  3. Prices on other exchanges around the world, track the Comex price, give or take.
  4. If LBMA pricing lurches away from Comex, then Comex will have to follow it anyway (is this true)?
  5. Historic moves in the gold & silver prices can usually be linked to corresponding positioning on the comex at the time.

Regardless whether these are or are not the main points, they are only a counter argument; they do not conclusively rebut Motley's point. From my own perspective, if I cannot personally argue Motely's point away, then by default, I simply don't know the answer. If I don't know, then many readers won't know, so it is effectively a topic worth discussion. If the debate cannot be won either way, at least the process will be informative and educational.

Hat tip to Motley from me for the original prompt; it is a valid challenge.

Mantis
Jul 18, 2013 - 11:50am

the matrix

If you can control the issuance and creation of money, then you can easily control the media, the regulatory authorities, the enformcement agencies, the LAW. when EVERYTHING is lies in a matrix of control and deceit what do you believe? Its like trying to play poker against someone who has unlimited money and can see everyones cards.

I think JPM being long in silver means something significant in the game of keeping power. when the world was on a bi-metallic standard, and silver was used as money all around the world. Silver was the first to be attacked.

zman
Jul 18, 2013 - 11:49am

@DPH

Good post, but when I bring up the physical silver non-shortage issue, many around here attack.

They fact of the matter is, physical investment demand for silver remains weak, people that buy silver future long contracts are NOT silver investors, therefore why should we expect them to move the silver price higher.

I don't care about ASE sales, they only make up 5% of the total global silver consumption, it doesn't mean that much today. ASE sales need to go up 3-4 fold to make a real difference.

I admit I was wrong, I really thought that massive global QE would have investors buy up huge amounts of physical silver, it hasn't happened. The available amount of investment physical silver from global production is very small, we talking only $7-9 billion for the whole globe.

benque
Jul 18, 2013 - 11:47am

Crime

These are the kinds of crimes I abhor, all equally, and in no particular order:

white /white; white/black; black/black; black/white; yellow/black; yellow/white; white/yellow; black/yellow; all of the above/all of the above; all of the above/any other; any other/all of the above.

Then of course:

all creeds/any other creed; any other creed/all creeds; any color/any creed; any creed/any color.

And last, but not least:

banskster psychopaths/all creeds and colors, sexes and ages.

Did I miss any? Will I be abused and vilified for missing something, or for not hating anyone but bankster psychopaths and their toadies?

alan2102tyberious
Jul 18, 2013 - 11:46am

tyberious: NSA affair

NSA affair: Ex-President Carter condemned U.S. snooping

Ex-President Carter: "The invasion of privacy has gone too far"

.........................................................

Not too shabby for a statist collectivist liberal socialist!

Plebeian
Jul 18, 2013 - 11:39am

"Golden" dollars

https://www.npr.org/2011/06/28/137394348/-1-billion-that-nobody-wants

Ag: I agree they feel like chuckie cheese tokens but the point is the are produced by the mint and directed by congress to be circulated yet the fed is hoarding them lobbies against their production and hates them. Why? I also enjoyed the comments from the NPR article.

zman
Jul 18, 2013 - 11:39am

Silver chart

I was just studying the long term silver chart a few pages back, and all I feel is frustration.

In early 2006, silver was $15-16 oz, here we are in 2013 or 7.5 years later, and basically no gains.

If 7.5 years long term investing? Yes. Did silver serve as a inflation hedge during those 7.5 years? No.

I remember Sinclair saying that silver was nothing more than "a game", maybe he does have a valid point.

GrigeoGrigeo
Jul 18, 2013 - 11:32am

"Last week it was race"

The race issue was (falsely) raised in the media for over a year. So one day of posts on the issue during the weekend is presenting problems for you?

The posts were mostly about the travesty of having the State try to railroad an innocent man (Zimmerman, who's great-grandfather was black). It was a very important case involving extraordinary abuse of power by the State, as Alan Dershowitz demonstrated.

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